STATE LENDING.

Dominion, Volume 6, Issue 1557, 28 September 1912, Page 5

STATE LENDING.

"A RECORD OF SQUANDERING.'*

FAVOURED BOROUGHS.

DURING ELECTION YEAR,

! A sensation was caused in the House of Representatives last evening when tho Minister for Finance made a statement in reference to 1 lie administration of tho Slate Guaranteed Advances Oflica by previous Governments. When the account of the State Guaranteed Advances Oilicc came up for review after midnight, Mr. G. W. Uus-cll moved io reduce an item by .til as an indication that tho .£5llOO limit imposed upon 'I he borrowing of counties should be removed. Mr. Allen said that he hoped the lion, member would call for a division. Ho had not imposed the limit of £5000, but the late Government had left behind it liabilities amounting to upwards of ■£000,000, which still had to be met. Tho Minister stated that the Government was going to bring down an amendment to tho Loans to Local liodies Act, under which tho country would find tho sinking fundfor certain loans raised for backvblock development. He could not-abolish tho ,£SOOO limit, boeause out of the amount to bo borrowed this year, which had been already reduced, from. • .£1,000,0011' - 10 ■£825,0(10,, liabilities left l>,V the previous Government would have to be met to the amount of .£653,700. Before he came into otlice and since this State Guaranteed Advances Act had been passed, the previous Government had for loans to local bodies committed the country to expenditure of .£2,152,195, and when he came into office tho Government had paid to thciu ,£1,081,000. Now • the Opposition said: "Why don't you raise the limit?" Now, who had got all this money? How much did the county councils get: out of it?—.£653,000. How much did the borough councils get out of tho ■£2,152,600?—.£1,011,790. • (Cries- of "Oil!"' and "Sliame!"). How much had gone to harbour bo'srds:—.£l22,ooo.

Sir. Glow: Tliey lire wealthy interests. Why don't you give it to the workers? Mr. Allen: 1 want to pivo it to ilia workers. Xow what boroughs have got it? This is the heritage that has b'cW left to tuc, not ,-t very nic> heritage, ] can assure you.. I am .very sorry I can't >domore for the needy local bodies. ...'.Ha went on lo say that the Government had granted one borough alone .£IIO,OOO. llr. Jlei'dnian: At election time? Mr. Allen: It. was granted between January and July, 1!)11. All hoii. inemlH':': What borough? llr. Allen: The Borough of Tiniaru, and that's not a novdy bnrmiK.'i. .tGD.ftOO lincl been paid to the Borough of Wsnganjii to the Borough of Wangaiuii Kast and this 1:H amount' had been granted one month before the general election. An hon. member: That was a bad "spec." " • : .Mr. Allen: The Borough of Onehung'a, ; (lie Borough of .Newmarket, X)5,»:i5. . ' Jlr. Iline: Where's that? AlUn: I. don't know. Ask Sir John iMiidlay. Mount Albert had received -£'.'10,000; Miramar, .£13,000; Marion, .£27,■ '8110; Hastings. .£78,D00. (Cries of ''Oh.") Greynlouth, ,£2(!,"20: Daigaville, .C21.50I); Blenheim, .£70,1511; Birkenhead, .£15,180. >~ow the honourable gentleman wanted to know where the money had g'ii\e; " . Jlr. Iline: What alwut Kemuera? .Air. Allen: Jieuiueia is not a bMxuigh. It is a lioad. Board. lie addetf that Uemuera had received threo days before, the election and i.'42,00U one month before tho election. llr. Iline: Diabolical! ■.. . . Mr. Allen: Would you liko lo hear.mors about counties? The amounts borrowed bad been ns followAkitio, t£37,000; liltlmm, .£54,610 (laughter); Pinko, .£31,000; Waiapu, .£80,030; Wairoa, ,£42,155; Waitemata, .£55,000; Wnitonio, .£54,0110; Whalignrei, .£13,370. With these figures perhaps members .would understand why he could not make any more (idvaivci's ; Mr, Kussell: ' Does that include (ha milljon to bo raised this year? Mr. Allen: Every penny of;it.

Jlr. W. I>. S. Macdonald protested that the Minister's statement implied that tho Superintendent of ■ the State Advances Office had abused his position. If that were so, ho should be removed from office. It was ridiculous io suggest that a loan could bo applied for and granted tlirrc| day; before an election, because (ill, sorts i of preliminaries, -including a poll of'rate'payors, 'had to bo gone through. .Up lo a certain-period in 1311 every local ■ bodyapplying for a loan got it. Many of (he liabilities mentioned by Mr. Allen would not fall in ibis year.

Mr. .G. .W. ••.Russell said., that itf enumerating tho ainomi'is paid to boroughs the Minister had forgotten the amounts paid to other bodies by way of grants. It was nil very well to complain about' somo of the money going to boroughs, but did not Die Minister know that more than half the population of tii's country v->s in eitie= and boroughs. Tho Prime Minister ftiid that, the statemenl of the Minister for Finance showed a record of squandering' sUch As this country had never seen before, During the greater part of tho discussion tn which tho Minister s statement; gave rise there were only four or fivo members on the. Opposition bcnchc. Messrs. Russoll and Macdonald warmly criticised the Minister's statement. Mr. Hino and other Government member; with equal vigour criticised the financial administration of tlio Ward and Mackenzie Governments. ' At l.fiO a.m. Mr. Russell's amendment was lost on tin- voices. Fix Opposition members were in their places when Iho vote was taken. Tlio House rose,a. few minutes, laler.